Tuesday December 22, 8:29 am Eastern Time
Company Press Release
SOURCE: Genzyme Transgenics Corporation
Genzyme Transgenics Corporation to Increase Credit Facility to a Total of $24.6 Million
FRAMINGHAM, Mass., Dec. 22 /PRNewswire/ -- Genzyme Transgenics Corporation (Nasdaq: GZTC - news) announced today receipt of a commitment from Fleet Bank to increase Genzyme Transgenics' credit facility by $15 million to a total of $24.6 million. The $24.6 million unsecured credit facility, which will be guaranteed by Genzyme Corp., will provide Genzyme Transgenics with additional capital to continue to meet its future growth objectives.
The facility will include a $17.5 million operating line of credit and a $7.1 million capital line of credit which will be used to refinance the Company's existing $2.1 million farm financing and will provide $5 million in new funding for expansion of the Company's production facilities.
In addition to the $24.6 million credit facility, Genzyme Transgenics Corporation also has received a commitment for a $5 million lease line of credit with Transamerica Technology Finance, a division of Transamerica Business Credit.
''Through these additional credit facilities, we will be able to finance near-term, strategic development activities, expand production facilities, and complete pivotal clinical trials with our lead product, recombinant human Antithrombin III,'' said Sandra Nusinoff Lehrman, M.D., Genzyme Transgenics' president and chief executive officer. ''By expanding our credit facilities by $15 million and adding a $5 million lease line, we have substantially strengthened the Company's financial position.''
Genzyme Transgenics Corporation applies transgenic technology to enable the development and production of recombinant proteins and monoclonal antibodies for medical uses. Primedica Corporation, Genzyme Transgenics' contract research organization, provides preclinical development and testing services to pharmaceutical, biotechnology, medical device and other companies. Genzyme Transgenics Corporation is also developing idiotypic vaccines in collaboration with the National Cancer Institute.
Genzyme General owns approximately 41 percent of the outstanding common stock of Genzyme Transgenics. Genzyme General [Nasdaq:GENZ - news] develops and markets therapeutic and surgical products and diagnostic products and services. A division of the biotechnology and health care products company Genzyme Corp., Genzyme General has its own common stock intended to reflect its value and track its performance.
The forward-looking statements contained herein reflect the current views of Genzyme Transgenics Corporation's management with respect to future events. These forward-looking statements are subject to certain risks and uncertainties, including the risk that the credit facilities will not close, that could cause actual results to differ materially from those in the forward-looking statements.
SOURCE: Genzyme Transgenics Corporation |
